Luke Howarth (Petrie, Liberal Party) Share this | Link to this | Hansard source

My question is to the Treasurer. Will the Treasurer please update the House on how the government is supporting the transition from the mining investment boom to a more diversified economy? Is the Treasurer aware of any threats to this transition and what impact higher taxes would have on hardworking Australians who are working, saving and investing in our new economy?

Scott Morrison (Cook, Liberal Party, Treasurer) Share this | Link to this | Hansard source

I thank the member for Petrie for his question. He knows that the Australian economy is performing well in a very difficult global economy. It is performing well, because it is transitioning well from the investment phase of the mining boom through to a stronger economy, a new economy, with more jobs—three per cent growth last year; higher than the US, higher than the UK, higher than Germany, higher than New Zealand, higher than Singapore and double the growth rate of comparable economies like Canada. More than 440,000 jobs have been created since the last election and, importantly, in the last 18 months, more than 50,000 jobs for young people saw the youth unemployment rate to go below what it was at the last election.

The budget that will be brought down on 3 May continues to focus on jobs and growth, ensuring that we have a targeted and sustainable tax system to support the commitments that the government must undertake for the long term and ensure that we stay on a consolidated path to budget balance by getting expenditure under control continually and growing the economy to grow revenues.

There are alternatives to that plan, and they are put forward by those opposite. They are simply this: to increase the tax burden on the Australian economy by $100 billion over the next 10 years. That is their figure, and they boast of it. They boast of the claim that they will increase the tax burden on the Australian economy by over $100 billion over the next 10 years.

They are not doing it to reduce the deficit; they are doing it to try and chase the money they are throwing around with even higher and higher spending. So, from those opposite, what you get are higher taxes, higher spending, a bigger deficit and a bigger debt. That is the proposal of those opposite in comparison to the path that is being pursued by those on this side of the House.

I quote the former Queensland Premier Peter Beattie, who said—

Tony Smith (Speaker) Share this | Link to this | Hansard source

The member for Jagajaga has been warned.

Scott Morrison (Cook, Liberal Party, Treasurer) Share this | Link to this | Hansard source

He said: 'I don't think Australia is in a great position to be increasing the tax burden to any significant degree.' I would call an increase in the tax burden of over $100 billion in the next 10 years by the proposals of those opposite with no proposal to reduce tax, no proposal to reduce spending, no proposal to reduce the deficit; just to see higher debt and higher deficits as a result of their policies.

What you have in the opposition leader is nothing new. We have seen it all before. We saw it in those six years where they took a $20 billion surplus and turned it into a $50 billion deficit. We have seen it all before: there is nothing new about this opposition leader.